Bitcoin Cash might seem a new name to you all but it has already started leading the crypto market. It is a decentralized peer-to-peer electronic cash system. The network of Bitcoin Cash is completely decentralized as it does not depend on centralized authorities like the government or any financial institutions.
If we compare Bitcoin and Bitcoin Cash, we will see the difference between them. These are two distinct stories. The miners of Bitcoin started the crypto asset Bitcoin Cash it has improved features and functionalities than Bitcoin.
If we say that Bitcoin Cash is the result of a Bitcoin fork, it will not be wrong. This act took place in the year 2017 in August. Bitcoin Cash was developed to lodge a bigger block size as compared to Bitcoin. The need for a bigger block size was to resolve the issues of transaction speed. The bigger block size allows more transactions every second. Though there were plenty of philosophical variances, Bitcoin Cash and Bitcoin still have multiple technical correspondences. Both platforms use a similar consensus mechanism and have already capped their coin supply at 21 million. The crypto asset Bitcoin Cash itself went through a fork in the year 2018 in November and was categorized into two divisions, Bitcoin Cash ABC and Bitcoin Cash SV (Satoshi Vision). Today, the Bitcoin Cash ABC is known as Bitcoin Cash.
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Key Factors of BCH Coin
The first-ever cryptocurrency, Bitcoin, was meant to be a peer-to-peer cryptocurrency that was used for routine transactions. But the issue was this platform only executed 7 transactions every second which was quite low as compared to new crypto assets launched in the crypto world. Bitcoin Cash has brought people all the solutions they require after facing issues with Bitcoin cryptocurrency.
Bitcoin Cash was developed to resolve the issue of speed and high charges of transactions that were found in Bitcoin. In Bitcoin Cash, the developers increased the block size to 8MB (8 Megabytes) initially and then changed it to 32MB (32 Megabytes) which enabled a higher rate of processing of transactions per block. After this alteration, the average number of transactions Bitcoin Cash can make every second is more than 1,000.
The key factors of Bitcoin Cash are given below:
A Currency for Every Individual
Nobody controls Bitcoin Cash. This crypto-asset does not have any CEO and there is no requirement of permission to use it.
Identity Game
In Bitcoin Cash, there is a whole new game of identities. The identities are not tied or linked to the transactions. This act helps in making sure that Bitcoin Cash is free to be utilized by everyone without the need for censorship.
Transparency
The transactions made on this platform are recorded properly on an international public ledger known as the blockchain. These blockchains are updated from time to time in blocks that are then linked or attached to the existing blockchain. This act facilitates everyone as people can see the complete history of ownership. Furthermore, this helps to remove the possibility of any scam or fraud.
Wide-spread Network
The blockchains are stored simultaneously by the network of participants, called nodes; this assists in ensuring the permanency of data and information.
Unchallengeable Platform
This feature means that once the data and information are recorded in the blockchain, there is no way to alter it. All the data and information become immutable.
Capped Supply of Coins
It has been decided that only a fixed number of tokens, which is 21 million, will ever be created. This makes Bitcoin Cash a solid asset, just like gold or land. This offers an opportunity for people to hold value in digital dominion over long periods.
More Economical Than BTC
Bitcoin Cash allows reliable, quick and reasonably priced transactions, regardless of location which includes cross-border transactions too. This feature makes it an efficient substitute for payment networks such as Visa, Debit cards, MasterCard, etc.
Upgraded Security
Bitcoin Cash uses an algorithm called Proof of Work (PoW) in which the miners have to compete with each other to add new blocks to the already existing blockchains. The machinery and the energy consumed in Proof of Work participate in the security of the ecosystem along game-theory driven rules like that attacking the ecosystem is both exorbitantly exclusive and assures that the attacked will not profit directly.
Advantages of Bitcoin Cash
- Low Transaction Fees
One of the primary goals of Bitcoin Cash is to keep transaction fees low. By increasing the block size, BCH can process more transactions per block, reducing competition for block space and keeping fees minimal. This makes BCH particularly attractive for small, everyday transactions.
- Faster Transactions
With larger blocks and less congestion, Bitcoin Cash transactions are often confirmed more quickly than on the Bitcoin network. This speed advantage makes BCH more suitable for point-of-sale transactions and other time-sensitive use cases.
- Improved Scalability
The increased block size of BCH allows it to handle a higher transaction throughput than Bitcoin. This scalability is crucial for BCH’s ambition to become a global payment system capable of serving millions of users daily.
- Focus on Everyday Transactions
Unlike Bitcoin, which has increasingly been viewed as a store of value or “digital gold,” Bitcoin Cash maintains a strong focus on being a medium of exchange. This aligns more closely with Satoshi Nakamoto’s original vision of a peer-to-peer electronic cash system.
The BCH Ecosystem
- Wallets and Storage: A robust ecosystem of wallets supports Bitcoin Cash, ranging from hardware wallets like Ledger and Trezor to mobile wallets such as Bitcoin.com and Electron Cash. These wallets provide users with secure storage options and easy-to-use interfaces for sending and receiving BCH.
- Exchanges and Trading: Bitcoin Cash is widely available on major cryptocurrency exchanges, including Binance, Coinbase and Kraken. This liquidity allows for easy trading between BCH and other cryptocurrencies or fiat currencies.
- Merchant Adoption: Several payment processors and point-of-sale systems support BCH, making it easier for merchants to accept the cryptocurrency. BitPay, for example, allows businesses to accept BCH payments and instantly convert them to fiat if desired.
- Development and Innovation: The Bitcoin Cash community is active in developing new features and applications. Projects like CashFusion for enhanced privacy and SLP (Simple Ledger Protocol) for token issuance demonstrate ongoing innovation in the BCH ecosystem.
FAQs
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Can I mine Bitcoin Cash?
Conclusion
The features mentioned above make Bitcoin Cash useful for routine transactions and microtransactions. Also, this currency is cheaper compared to Bitcoin as it uses only a fraction of sent for sending Bitcoin Cash coins. Bitcoin Cash is going to be a winner in the near future as people are starting to get involved as well as invest in it.